The thing about not using IDE0 is crazy. If you shouldn't use it then they wouldn't have them.
Regarding various speed devices, it used to be true that the IDE interface for a given channel would only communicate in the slowest common speed of the devices on the channel. In other words, it you put an ATA33 device on the same IDE channel as an ATA66 device, then both devices would communicate at ATA33 speeds. That's why hard disks are typically on the first channel and CD-ROMs typically are on the second channel (hard disks typically have higher interface speeds than CD-ROMs). I don't know if this still holds true for modern IDE devices, but I know of no reason why this would have changed.
However, as stated previously, the master/slave relationship has nothing to do with device speed. One device isn't subservient to the other or anything, and many manufacturers now use the more politically correct labels "primary and secondary" or "first and second".